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Which institution is the "lender of last resort" for banks in India?The Central Government of IndiaSecurities and Exchange Board of India (SEBI)Insurance Regulatory and Development Authority of India (IRDAI)The Reserve Bank of India (RBI)

Question

Which institution is the "lender of last resort" for banks in India?The Central Government of IndiaSecurities and Exchange Board of India (SEBI)Insurance Regulatory and Development Authority of India (IRDAI)The Reserve Bank of India (RBI)

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Solution

The Reserve Bank of India (RBI) is the "lender of last resort" for banks in India.

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What is a lender of last resort?Select the correct answer below:A lender of last resort is an institution that provides short-term emergency loans in conditions of financial crisis.A lender of last resort is an institution that operates between a saver with financial assets to invest and an entity that will borrow those assets and pay a rate of return.A lender of last resort is an aid in an economy's exchange of goods and services for money or other financial assets.A lender of last resort is a fund that a bank keeps on hand that is not loaned out or invested in bonds.

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